WALVIS BAY – Controversial lithium mining company Xinfeng Investments has admitted to engaging in illegal mining in a letter addressed to mining commissioner Isabella Kandjii-Chirchir last week. 

However, in a bold move, the company has also requested the mines ministry to expedite the approval of their licence and paperwork so they can export processed ore before the end of the year.

Kandjii-Chirchir declined to comment on the letter. 

“I cannot comment right now, as there is an ongoing investigation,” she said. 

The letter, seen by New Era, was written by Xinfeng’s director Xie Yiming, who acknowledged the illegal mining, describing it as an overstep. 

This comes amid allegations from employees that the company has been conducting illegal mining since last year at Ringmen.

The illegal operation was shut down on 16 November following an unannounced visit by Kandji-Chirchir. 

She found the company in the act of transporting stockpiled ore from Ringmen, located about 10 kilometres from Xinfeng’s main operations.

In the letter to the ministry, signed by Yiming, the company admitted to breaching the exploration boundaries of the EPL-8397 area. 

Xinfeng described the overstep as a result of an internal investigation that was launched after operations were suspended. 

The ministry’s intervention, prompted by what the company called “high levels of conflict at their mining operations”, led to the temporary closure of the site.

“We tender our most sincere apologies. This has never been our model for business conduct, but this incident has introduced a number of key changes in our way of work,” Yiming said.

 He added that the suspension of operations and delays in regulatory approvals have placed the company in a difficult financial position.

The company is now urging the government to urgently approve their mining licence and export permits to resume operations. “Interruptions are expensive because they drive up costs, especially in a fluctuating market where prices appear to be in a freefall,” he noted.

The company now claims that if the permits are granted, approximately 80 drivers could be employed to facilitate the export of processed lithium concentrate before the end of the year.

Former employees told New Era last week that the alleged illegal mining at Ringmen began as early as last year with a stockpile from the site, mixed with legally mined material from Xinfeng, which was reportedly exported between April and June this year. 

The sources claim that more than 15 000 metric tonnes worth millions are currently at Xinfeng, waiting for documentation and approval from the ministry for export. “Some of the stockpile was mined at Ringmen,” they told New Era. 

The community of Uis this past weekend said the alleged illegal mining is not new to Xinfeng. 

They said they have alerted the government on several occasions regarding the company’s operations. 

Community activist Jimmy Areseb said they are concerned about the company’s operations, particularly regarding environmental damage and resource exploitation.

“We’ve seen the magnitude of resources being extracted from our land, and we demand compensation. If the company has caused damage, they must pay the government, traditional authorities and the conservancy,” he said.

The activist criticised the line ministry for failing to enforce stricter laws for illegal mining activities, adding that the government must take action and put mechanisms in place, as there are no repercussions for companies stealing resources.

“We saw drilled holes and evidence of continued illegal mining even after being ordered to stop. The company has ignored the government’s authority,” he said.

The community members are calling on civil society organisations and non-governmental organisations to assist in holding the company and the mining ministry responsible for its reluctance to take action against the transgressors.